<DOCUMENT>
<TYPE>EX-99.77E LEGAL
<SEQUENCE>3
<FILENAME>exh77e204.txt
<DESCRIPTION>REGULATORY MATTERS
<TEXT>


NAME OF REGISTRANT:
Templeton Global Income Fund, Inc.
File No. 811-5459

EXHIBIT ITEM No. 77(e): Legal Proceedings


REGULATORY MATTERS

On February 4, 2004, the Securities Division of the Office of the Secretary of
the Commonwealth of Massachusetts filed an administrative complaint against
Franklin Resources, Inc. and certain of its subsidiaries (the "Company"),
alleging violations of the Massachusetts Uniform Securities Act. The complaint
arises from activity that occurred in 2001 during which time an officer of a
Company subsidiary was negotiating an agreement with an investor relating to
investments in a mutual fund and a hedge fund.

The Funds, in addition to other entities within Franklin Templeton Investments,
including the Company and other funds, has been named in shareholder class
actions related to the matter described above. The Funds' management believes
that the claims made in the lawsuit are without merit and they intend to defend
vigorously against the allegations. It is anticipated that the Funds may be
named in additional similar civil actions related to the matter described above.

In addition, as part of ongoing investigations by the U.S. Securities and
Exchange Commission (the "SEC"), the U.S. Attorney for the Northern District of
California, the New York Attorney General, the California Attorney General, the
U.S. Attorney for the District of Massachusetts, the Florida Department of
Financial Services, and the Commissioner of Securities and the Attorney General
of the State of West Virginia, relating to certain practices in the mutual fund
industry, including late trading, market timing and sales compensation
arrangements, the Company and its subsidiaries, as well as certain current or
former executives and employees of the Company, have received requests for
information and/or subpoenas to testify or produce documents. The Company and
its current
employees are providing documents and information in response to these requests
and subpoenas. In addition, the Company has responded to requests for similar
kinds of information from regulatory authorities in some of the foreign
countries where the Company conducts its global asset manage- ment business.

The Staff of the SEC has informed the Company that it intends to recommend  that
the  Commission  authorize an action  against an affiliate of the Funds' adviser
and a senior executive  officer relating to the frequent trading issues that are
the subject of the SEC's  investigation.  These issues were previously disclosed
as being under  investigation  by government  authorities  and the subject of an
internal  inquiry by the  Company  in its Annual  Report on Form 10-K and on its
public website. The Company currently is in discussions with the SEC Staff in an
effort to resolve the issues raised in their investigation. Such discussions are
preliminary  and the Funds'  management has been advised that the Company cannot
predict the likelihood of whether those  discussions will result in a settlement
and, if so, the terms of such settlement.  The impact,  if any, of these matters
on the Funds is  uncertain  at this  time.  If the  Company  finds that it bears
responsibility for any unlawful or improper conduct,  it has committed to making
the Funds or their shareholders whole, as appropriate.





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